The plans will help fund a £15.5bn investment programme which will include: a £400-£600m modernisation of the West Coast Main Line using private sector money and a further new £200 million air traffic control centre which the Civil Aviation Authority will site in Scotland and invite the private sector to finance, design, build and maintain.
Mr MacGregor said: 'Our plans for the next three years have above all two main features: public expenditure in key areas remains at historically high levels recognising the need to maintain transport infrastructure and capital investment; and the department is playing a leading part in the private finance initiative.
'Investment in the railways over the next three years is planned to be £3bn, of which £2.7 bn will be invested by the public sector. Next year about 40% of the government's total transport expenditure will be used to improve public transport still further although only 14% of journeys are made by bus, rail and tube.
Details of the programme of new schemes that will start in 1994-95 will be announced in the New Year.
Mr MacGregor said spending on local roads over the next three years would be £2.7 billion. Details of the support available for local transport will be published before Christmas.